The security could today notch its best day since October
GameStop Corp (NYSE:GME) stock is up 12.6% to trade at $28.60 at last glance, after the company's board approved a plan to use corporate dollars to buy Bitcoin (BTC) as pat of its investment strategy.
Should today's gains hold, the security will enjoy its best day since October, and notch its third win in the last four sessions. The equity already boasts an impressive 80.8% year-over-year, and earlier hit its highest level since January in addition to topping its 80-day moving average.
Short sellers are already hitting the exits, with short interest down 5.7% over the last two reporting periods. However, the 28.52 million shares sold short still account for 7% of the stock's available float, indicating a further winding on pessimism could boost GameStop stock.
Drilling down to today's options activity, with 231,000 calls and 90,000 puts have crossed the tape, which is 11 times the intraday average volume. Most popular is the weekly 3/28 30-strike call, where new positions are being opened.
From a volatility perspective, now may be an opportune time to trade GME options. Its Schaeffer's Volatility Index (SVI) of 76% stands in the 9th percentile of its annual range, suggesting relatively low option premiums -- favorable for buyers initiating long volatility strategies.